The Balanced Scorecard as a Strategy Implementation and Performance Measurement Tool at the Parliamentary Service Commission of Kenya

Abstract

While the quality of a strategy is important for the success of an organization, successful and effective execution of that strategy is equally important. The use of the Balanced Scorecard as a tool for strategy implementation and performance measurement appears to be increasingly gaining prominence in organizations. The objective of this study was to establish how the Parliamentary Service Commission of Kenya uses the Balanced Scorecard as a strategy implementation and performance measurement tool. The study also detailed the benefits and challenges the organization faced from the use of the Balanced Scorecard as a strategy implementation and performance measurement tool and how it dealt with those challenges. The study adopted a case study research design because the research unit was one organization. The study involved collection of both primary data and secondary data. Primary data was collected by administering interviews through the interview guide. The interview was administered to four senior managers in: Finance and Accounting for data on the financial perspective; Information and Research for data on customer focus; Litigation and Compliance for data on internal business process; and Human Resources and Administration for data on learning and growth. The reason for choosing the respondents was because they were highly involved in crafting, implementation, and reviews of the commission‟s strategic plans and therefore had a wide knowledge of the challenges and response strategies adopted by the commission. Secondary data was collected from the Commonwealth Parliamentary Association journals, periodicals, the commission‟s strategic and action plans, annual budgets, financial reports, procedure manuals, commission‟s website and other publications. The data obtained from the respondents was mainly qualitative. Content analysis (thematic and narrative approaches) was used to analyze the findings. The study established that the organization uses all the perspectives of the Balanced Scorecard; internal business processes, Customer perspective, Learning and Growth perspective and Financial perspective. The study recommended that there is need for further training of employees to deepen their understanding and appreciation of the Balanced Scorecard as a tool of strategy implementation and performance measurement. A balanced scorecard is a management tool that translates the organization‟s mission and strategy into a collection of performance measures. For successful application of the balanced scorecard, the study recommends that all staff must be involved and must understand the meaning and objectives of the balanced scorecard, all departments must be aligned towards achieving organizational objectives. In the unique context of the Commission, the findings of the study would provide framework for the development, implementation and evaluation of various policy areas such as the training and development, human resource procurement, financial management, research and development, litigation and compliance, information systems, customer service, et cetera. In the same light, the study sought to link the three fundamental concepts of the: Balanced Scorecard model, Resource based, and Stakeholder theories. The findings of the study would, however, still recommend various realignments in the operations of the Commission in areas such as internal control systems to bolster transparency and accountability.